Brazil's leading cryptocurrency and fintech associations, including ABcripto and ABFintechs, have jointly opposed the proposed extension of the Financial Transactions Tax (IOF) to stablecoin trading. Representing over 850 companies, these groups argue that taxing stablecoin transactions would conflict with Brazil's legal framework and potentially violate the Constitution and the 2022 Virtual Assets Law. The associations emphasize that such a tax could harm the burgeoning cryptocurrency industry in Brazil, where the monthly market volume is estimated between $6 billion and $8 billion, with stablecoins accounting for about 90% of transactions. The opposition highlights concerns over the potential negative impact on the sector's growth and regulatory consistency.